TC09555 - [2025] UKFTT 00748 (TC)

The invoices for rental payments and an invoice for negotiating occupation were addressed to 3KH and thereby, complied with the provisions of regulation 29. However, 3KH is entitled to recover the VAT shown as input tax if it can demonstrate that the property was intended to be used by 3KH in its business.

It was not contended that 3KH had ever operated from the property.

In oral evidence MJ stated that it had been intended that 3KH would operate a restaurant from there, but it did not happen for operational reasons, though these reasons were not explained. We were not provided with any further detail and there were no business plans or other documentation to support the contention.

Officer Beard’s evidence was that he had seen social media posts which indicated that the property was to be used as an Oodles N’Oodles restaurant. A copy of the social media post was not in the bundle.

As previously indicated, we found Officer Beard to be a credible witness and MJ to lack credibility and therefore prefer Officer Beard’s evidence and absent any documentation to support the contention that 3KH intended to operate a Tipu Sultan restaurant in Manchester we find no basis on which to conclude that the VAT was incurred as input tax intended to be used by 3KH with the consequence that it was properly denied.